All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
engineering
chemical engineering
Questions and Answers of
Chemical Engineering
How is labor productivity related to the standard of living?
Use the equation that relates the standard of living to labor productivity to describe the probable effect on the standard of living of each of the following: a. There is a baby boom, causing the
In 2000, France shortened the legal workweek to 35 hours (from the previous workweek of 39 hours). Hours worked in excess of 35 would require payment of overtime.a. All other things being equal, how
Consider the following statement: “Leisure time is not counted in real GDP because it is not a productive activity. So, it should not be part of the measurement of the standard of living,
Measures of income distribution from the CIA World Factbook show that the most unequal income distribution in the world in 2009 was in Namibia. Namibia is also a relatively poor country, with per
Economist Robert Frank and others suggest that some goods are “positional.” In other words, their value comes largely from their relative desirability, such as the best house in the neighborhood,
Why does the marginal product of capital decrease as more capital is added?
Some countries experiencing low birthrates are offering women incentives to have children, such as income subsidies and other benefits. Does the analysis in this section suggest that a decline in the
Suppose that the per hour worked form of the production function for an economy is given by the depreciation rate is 10%, the investment rate is 20%, and the growth rate of labor hours is 2%.a. Find
Suppose that the economy described in problem 2.11 is at the steady-state capital-labor ratio. A change in preferences causes the investment rate to rise to 25%.a. Describe the forces that will move
It is often said that economies with larger investment rates will grow both faster and for a longer time. Imagine two economies both of which have a capital–labor ratio that is less than the steady
The former Soviet Union, a planned economy, was able to maintain consistently high rates of investment for decades. Use the Solow growth model to explain the limitations of growth through an
Explain the concepts of depreciation and dilution.
Use the bathtub analogy to explain the steady state capital-labor ratio.
Following World War II, many countries, including the United States, experienced a baby boom— an increase in the growth rate of the population.a. Use the Solow model to demonstrate the effect of a
Following the 2007–2009 financial crisis, interest rates on many investments declined to historically low levels.a. Assume that savers respond to low interest rates by reducing their saving rate.
Consider the following statement: “Without a well-functioning financial system, it is not possible for an economy to reach its full potential for economic growth.”a. Briefly explain whether you
Most countries that have experienced high rates of economic growth have economies that can roughly be characterized as free market. China’s economy is one of the most rapidly growing in the world,
What factors cause total factor productivity to change?
What role does geography play in economic growth?
Consider the economy described in Problem 2.11. Suppose that total factor productivity increases to 15.a. Find the new levels of the steady-state capital–labor ratios and real GDP per hour
One comprehensive study of contributions to growth in recent years found that the majority of growth in China over the 2005–2007 period was due to increases in the capital stock, although there was
Investment in research and development is strongly linked to growth in total factor productivity. Governments usually support research and development activities because firms will tend to under
What is a balanced growth path?
Suppose that an economy is growing at its steady state rate of 4% per year when a natural disaster destroys one-quarter of its capital stock, leaving all other factors of production unchanged. a.
Prior to 2009, Zimbabwe experienced a decade of negative economic growth. Although there were many causes of these problems, two prominent causes were misguided land reforms that removed considerable
On average, growth rates for high-income economies are much lower than growth rates for low-income economies. How does the Solow model explain this?
The average growth rate in the United States is about 2.9%, and real GDP per capita is about $47,400. The average growth rate in China is 8.5%, and real GDP per capita is about $7,400. The average
The following graph shows an economy that is at the steady-state capital€“labor ratio. Suppose that an increase in the rate at which capital depreciates causes the break-even investment line to
Is the world on a balanced growth path? What evidence do we have?
Are all countries on a balanced growth path? What evidence do we have?
How did Germany diverge from a balanced growth path? How did it return?
Japan diverged from a balanced growth path and apparently returned to a higher growth path. What changed?
Consider the economy described in problems 2.11. Suppose that annual growth in total factor productivity is 2%. a. What is the steady-state growth rate of real GDP? b. What is the steady-state growth
Suppose that all economies have the following production function Y = K1/2L1/2: A developed country has a saving rate of 28% and a population growth rate of 1% per year. A less developed country has
What is a store of value? What types of assets act as a store of value?
After the French Revolution in 1789, France experienced a hyperinflation similar to Zimbabwe’s (although much smaller in magnitude). At one point, the French currency was worth so little that
What is a medium of exchange? Why must money act as a medium of exchange?
What is a standard of deferred payment, and why is it important?
List the components of M1 and M2.
Each of the following has been used as money at some time in the past. Comment on how well each fulfills the four functions of money and why it might be used as money.a. Gold or silverb. Cigarettesc.
People living in Yap, an island group in the Pacific, at one time used as money large stone disks known as Rai. These disks can be up to 12 feet in diameter and were made of a stone that is not
Briefly explain why the monetary base is often called “high-powered money.”
Suppose that the required reserve ratio is 8%, banks hold 5% of deposits as excess reserves, and the currency-to-deposit ratio is 2.a. What is the value of the money multiplier?b. If the Fed conducts
What is the formula for the money multiplier?
How does the Fed control the monetary base?
Why does the Fed have greater control over the monetary base than over the money supply?
In April 2011, the money supply, as measured by M1, was approximately $1,917 billion. The monetary base was approximately $2,494 billion.a. What was the value of the money multiplier?b. Why is the
As of early 2011, banks continued to hold large amounts of excess reserves, leading to concern that potential increases in lending activity could increase the money supply and the inflation rate.a.
Consider the following statement: “The central bank is the only entity that can print money. Therefore, the central bank has complete control over the money supply.” Do you agree with this
What is the difference between the quantity equation and the quantity theory of money?
According to the quantity theory, what is the relationship between the rate of growth of the money supply and inflation?
The average annual growth rate of real GDP for the United States is about 3%. Assume that the growth rate of velocity is 0%, and the rate of growth of the money supply is 4%. a. What is the current
In 2010, the money supply, M1, was $1,832 billion.Nominal GDP was $14,660 billion.a. What was the velocity of money measured using M1?b. In 2010, M2 was $8,816 billion. What was the velocity of money
During the late nineteenth century, the United States experienced a period of sustained deflation, or a falling price level. Explain using the quantity theory of money how deflation is possible. Is
The quantity theory of money states that changes in the money supply have predictable effects on the price level, or, in other words, that money growth determines inflation in the long run. Under
During the Great Depression, the price level fell during some years.a. With a falling price level, what happens to the actual real interest rate? Does your answer depend on what happens to the
Do the data in Figure 6.5 on page 204 support the Fisher effect?
The long run growth rate of real GDP for the United States is about 3%, and the expected real interest rate on corporate A bonds has averaged 2.8%.a. If the growth rate of velocity is 0% and the rate
Suppose that inflation has been equal to 3% per year for several years and that the real interest rate that banks require on typical mortgage loans is 2%. a. What nominal interest rate would banks
In the spring of 2011, as worries about the possibility of the Greek government defaulting on its sovereign debt rose, the nominal interest rate on Greek bonds increased sharply. a. Why did the
Suppose that consumer preferences are changing, so that more consumers want to buy chicken and fish and fewer want to buy beef and pork.a. If inflation is low and fully anticipated, how would you
It is often said that inflation “greases the wheels of the labor market.” Explain what this statement means.
Suppose that the inflation rate in an economy has been 4% for several years. The central bank unexpectedly increases the rate of growth of the money supply by 2%. Describe the effect on each of the
The idea of shoe-leather costs is that people wear out their shoes going back and forth to the bank. While this is unlikely in reality, what are some examples of actual costs that you might incur by
How can the expected inflation rate be determined?
Forty years ago, it was typical for grocery stores to post prices by labeling each individual can or box. When prices changed, an employee would have to relabel every item in the store so that the
How does hyperinflation occur?
While hyperinflations are always caused by rapid growth in the money supply, they can be intensified by the actions of households and firms trying to protect themselves from inflation by spending
If hyperinflations are caused by governments printing money, why don’t the governments of these countries simply choose to reduce the rate of the growth of the money supply? Carefully explain the
One problem with hyperinflation is that it reduces economic growth, both through resource misallocation and by reducing saving and investment.a. Why does hyperinflation cause misallocation of
Hyperinflation occurred in the South during the U.S. Civil War (1861–1865). Unable to tax effectively in a largely agricultural economy, the Confederate government was forced to print money,
The following table shows the approximate daily rates of inflation from some of the worst hyperinflation episodes in history:A simple way of calculating the approximate amount of time it will take
By early 2009, Zimbabwe was experiencing inflation that was estimated to be 231 million percent per year. Because of the rapidly falling value of paper money, the government was forced to issue
The graph below shows the labor market. The initial equilibrium is at point A. The new equilibrium is at point B.a. What factors could have caused the shifts shown on the graph?b. Show the new
How do the income and the substitution effects determine the slope of the labor supply curve?
Draw a graph of the aggregate labor market in equilibrium. Then consider each of the following scenarios. In each case, show the effect on the market and explain what will happen to the real wage and
According to Claudia Goldin of Harvard University, in the United States prior to 1940, most married women who worked had limited education and came from lower-income families. She argues that:
Suppose that workers become concerned about the future and therefore wish to increase their hours of work relative to leisure. At the same time, there is an increase in the capital stock, making
In countries with declining populations, governments have begun to offer income subsidies for families with children. What impact is this subsidy likely to have on the labor market, all other things
Discussing job openings during the recession, Cheryl Peterson, a director of the American Nurses Association, was quoted as saying: “Until the downturn, it was easy for [nurses] to find employment.
February 2010, the average duration of unemployment increased to 30.5 weeks, a record high. According to CNN Money, “It’s no wonder unemployed workers are getting discouraged: It’s never taken
Compare the average duration of unemployment in the United States and Europe.
Increases in structural unemployment can result from a recession but are more commonly associated with other changes, such as the development of new products that replace old products. A classic
In countries with high birthrates, such as many of the Central and South American nations, unemployment rates are typically far higher than in countries with lower birthrates. Explain why.
Demographic studies show that the Hispanic population of the United States is increasing. Traditionally, Hispanics have had higher-than-average rates of unemployment. However, it is also true that
The following table, based on data from the Bureau of Labor Statistics, gives total nonfarm employment in October, November, and December 2010:a. Calculate the change in nonfarm employment between
Suppose that the rate of job separation is 2% and the job-finding rate is 18%.a. What is the natural rate of unemployment?b. If the job-finding rate doubles, what is the new natural rate of
How would you expect each of the following factors to affect the natural rate of unemployment? a. There is an increase in the rate of technological change. b. The minimum wage falls. c. Unemployment
The CBO estimated that the natural rate of unemployment was 6.8% in 1979 and 5.0% in 2001. If you examine Figure 7.10 on page 250 carefully, you can see that the natural rate remained relatively
Increases in the generosity (percentage of wages replaced) and duration of unemployment benefits are associated with increases in the natural rate of unemployment. a. Why do governments provide
How does a real wage above equilibrium cause unemployment?
Suppose the equations for the demand and supply of labor are given by: LD = 100 - 2w LS = 10 + 3w Where w is the real wage and LD is LS the quantity of labor demanded and supplied, respectively. a.
In 1914, Ford Motor Company doubled its wage to $5 per day, a rate that was considerably above the average wage at that time. a. In terms of efficiency wages, explain why Ford would have had an
Minimum wage laws are controversial for many reasons. One is that they may not be beneficial to the workers that they are most intended to help. a. What type of workers is most likely to be paid the
Some craft unions, such as electricians, restrict the number of workers who can join the union and then negotiate with employers to hire only union workers. Use a demand and supply graph to
Traditionally, unions have been strongest in manufacturing industries. In the United States, unionism reached its peak in 1945, and it has been falling since then. a. How does the changing sect oral
Does the extent of labor unionism explain the difference between European and U.S. unemployment rates?
Discussing the recovery of the labor market in Europe, the European Central Bank (ECB) noted: “Hourly wages adjusted earlier and more sharply in the United States than in the euro area. Different
In Japan, relationships between labor unions and management tend to be less adversarial and more cooperative than those in the United States and Europe. What are the implications of this observation
Showing 2700 - 2800
of 6781
First
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Last